Planning In Small Firms Research Articles

Strategic planning in smaller enterprises – new empirical findings

PurposeTo analyze the performance implications of essential elements of strategic planning (time span, formalization, frequency of control, and use of planning instruments) in smaller enterprises in a simultaneous way.Design/methodology/approachThe main methods being used for this article were a thorough review of literature for the development of hypotheses and a logistical regression analysis for the empirical evaluation. The study is based on a representative sample of small Austrian enterprises (n = 290).FindingsPlanning formalization has a positive and highly significant impact on the probability of belonging to the group of growth firms, whereas other aspects of strategic planning (time horizon, strategic instruments, and control) did not contribute to performance.Research limitations/implicationsEmployee growth has been used as an indicator for firm performance. Other indicators (e.g. sales growth, profitability, and subjective evaluation of the entrepreneur) might be used to draw a more detailed picture. Additionally, dichotomizing the dependent variable has some weaknesses. Furthermore, only a limited number of industry categories have been controlled for.Practical implicationsPractitioners might want to emphasize formal strategic planning in order to enhance the probability of performance. Also, they might want to regard the business plan as a management and learning tool rather than as a pure means to generate funding.Originality/valueThis paper is the first to analyze different dimensions of strategic planning in small firms simultaneously. Additionally, it is one of only very few studies outside of the Anglo‐American realm, which might be a help especially for European SMEs (small and medium‐sized enterprises).

Knowledge-based systems for strategic market planning in small firms

This paper gives an overview of strategic planning and decision-making in small firms, together with a discussion of the use of knowledge-based systems in strategic market planning. Furthermore, we describe the STRATEX system, which is a knowledge-based system for strategic market-planning in the export trade of fish and fisheries products. The results of the pilot system development of STRATEX are briefly presented, along with a discussion of needs for further developments in this field.

Marketing planning in the larger family business

In recent decades a considerable literature on marketing planning has accumulated. The larger part relates to marketing planning in big firms with specialized, professional managers. There are books on the subject, like that of Malcolm McDonald which has gone through several editions, and there is also a steady stream of articles in the academic journals. In addition, the marketing planning activities of big firms are referred to by many more writers in the overlapping but broader contexts of “strategic marketing” and “strategic planning”. A lesser part of the literature relates to marketing planning in small firms. The small firms in question are usually very small. Typically they are owner‐managed and employ just a handful of people in a single location. The purpose of this study is to fill a gap in the literature by examining a medium‐sized firm; a category which seems to have been neglected by researchers. Most modern economies are characterized by a significant group of middle‐sized firms, still owne...

Spontaneity and Systematic Planning in Small Firms

Spontaneity and Systematic Planning in Small Firms

Research Thrusts in Small Firm Strategic Planning

Explores the research on strategic planning in small firms by analyzing previous studies. Four areas of research are identified for review: strategic planning practices, the value of strategic planning, specific features of the planning process, and the content of the strategies. The studies focusing on strategic planning practices found that in small firms this planning is not comprehensive, but rather it is reactive and unstructured. The reasons for this include limited time, difficulty in getting started, lack of specialized expertise, and lack of trust and openness. Those studies that considered the value of this planning found that strategic planning enhanced firm performance. In examining the features of the planning process in small firms, four characteristics are identified as being helpful. They are (1) short time horizon, (2) informal process, (3) systematic incorporation of several participants, and (4) reduction in initial objective setting. Three studies are discussed with respect to content of strategic planning. To conclude, further research topics are suggested for each of the areas of research discussed. (SRD)